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IPG Photonics (IPGP) to Post Q2 Earnings: What to Expect?

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IPG Photonics (IPGP - Free Report) is set to release second-quarter fiscal 2021 results on Aug 3.

For the quarter, the company expects revenues between $360 million and $390 million. Earnings are expected in the range of $1.20-$1.50 per share.

For the second quarter, the Zacks Consensus Estimate for earnings is pegged at $1.39 per share, unchanged over the past 30 days and indicating growth of 52.8% from the figure reported in the year-ago quarter.

The consensus mark for revenues is pegged at $379 million, which suggests an improvement of 27.8% from the year-ago quarter’s reported figure.

IPG Photonics’ earnings beat the Zacks Consensus Estimate in all of the trailing four quarters, delivering an earnings surprise of 33.8%, on average.
 

IPG Photonics Corporation Price and EPS Surprise

IPG Photonics Corporation Price and EPS Surprise

IPG Photonics Corporation price-eps-surprise | IPG Photonics Corporation Quote

 

Let’s see how things have shaped up for IPG Photonics prior to this announcement.

Factors to Consider

IPG Photonics expects the improving macroeconomic environment and recovery in capital spending, along with emerging trends like energy efficiency and sustainability, displacement of legacy lasers and increases in electric vehicle battery capacity, to drive demand for its laser solutions.

IPG Photonics’ efforts to expand into new end-markets like advanced applications (3D Printing and micro-materials processing), renewable energy, electric vehicle battery processing and systems, ultra-high-power cutting, and medical are likely to have contributed to the to-be-reported quarter’s performance. Strength in new solutions also holds promise.

Development of new medical applications utilizing fiber lasers for urological and dental procedures may have aided adoption of laser-based medical solutions. This, in turn, is likely to have driven second-quarter performance.

IPG Photonics is benefiting from solid demand in China and North America. Continued momentum in higher power products in core materials processing domain and strength in new solutions are expected to bolster the top line along with strength in fiber & diode lasers, fiber amplifiers and transceivers portfolio.

However, weaker demand trends for several product categories and stiff pricing competition are likely to have put pressure on IPG Photonics’ second-quarter performance.

What Our Model Says

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

IPG Photonics has an Earnings ESP of 0.00% and carries a Zacks Rank #3 currently. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are a few companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases:

Avnet (AVT - Free Report) has an Earnings ESP of +9.82% and a Zacks Rank #1.You can see the complete list of today’s Zacks #1 Rank stocks here.

CyberArk Software (CYBR - Free Report) has an Earnings ESP of +37.93% and a Zacks Rank #2.

Bruker (BRKR - Free Report) has an Earnings ESP of +2.50% and a Zacks Rank #2.